Duty on Imported Cars Declared ‘Null and Void’ by Sindh High Court

In October 2017, the government had issued a Statutory regulatory order (SRO) 1035 (1). This was meant to increase regulatory duties on more than 731 import items including, Duty on Imported Cars. And after this order, the prices of different items increased substantially, particularly cars. Recently, Sindh High court (SHC) has abolished this SRO established by Government.

The case was launched in Lahore and Sindh High courts by Audi Pakistan, Porsche and BMW against the SRO which has hiked Duty on Imported Cars. In response, the verdict form SHC has termed the SRO to be null and void.

It was commented by the court that nobody can increase the duty on the basis of this particular SRO and those, who have paid the extra duties will be refunded. In response to court’s verdict, the government has a time of one month to appeal against the decision.

The issuing authority was not eligible to enunciate this rise in regulatory duties but still, it was put into effect and prices soured much high. The duty on imports was increased by 60-80% as result of this SRO, and Audi Q5 that cost Rs.16.5 million was Rs.19.5 million after this increase of duties. But after courts verdict, the prices will settle to their previous positions that were before the implementation of SRO.